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Neil Woodford urges investors to keep the faith after Prothena setback
(WebFG News) - Neil Woodford urged investors to stick with his investment trust after one of its biggest investments scrapped the most advanced drug in its pipeline.
Woodford, one of Britain's most closely followed fund managers, said his Woodford Patient Capital Trust had stakes in several companies that would be worth billions of dollars each in the next five years.
The trust's investors were dealt a blow on 23 April when Prothena, an Irish biotech company listed on the US Nasdaq index, said it would halt all spending on Pronto after the treatment for AL amyloidosis failed its trial.
Woodford said the failure was disappointing but that Prothena, his trust's biggest holding for much of 2017, had further options including collaborations with two big drug companies. The trust, set up in 2015 to invest in small-cap growth companies, has other investments that will reward investors who stay the course, Woodford said.
"There are many businesses in this portfolio that I believe should become multi-billion dollar organisations within the next five years," Woodford said. "Patience has been required to get to this stage and it remains a prerequisite for investing in this part of the asset class. The investment case for WPCT [the trust], despite Prothena's news, remains compelling."
Trust chair Susan Searle said Oxford Nanopore, Atom Bank and Autolus were making progress that would boost financial performance "in due course". Other investments include Purplebricks, the online estate agent, and Benevolent AI, which uses artificial intelligence to discover new drugs.
Woodford made his case as the trust reported net asset a fall in net asset value per share to 91.33p at the end of December from 93.24p a year earlier.
The former Invesco star fund manager has had a rough ride since setting up his own firm in 2014. Woodford, who has been compared with Warren Buffett, had his worst year for two decades in 2017 as his funds underperformed the rising stock market.
Woodford put out a video explaining more of his thoughts on Prothera, its "multiple shots on goal" and "extremely valuable" technology platform, as well about the broader strategy and outlook.